Note: Consolidated statements of income; revenue, EBIT and EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three months and six months ended June 30, 2020 and 2019, and consolidated balance sheets at June 30, 2020 and December 31, 2019 are attached.
| Pitney Bowes Inc. | |||||||||||||||||
| Consolidated Statements of Income (Loss) | |||||||||||||||||
| (Unaudited; in thousands, except per share amounts) | |||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||||
| Revenue: | |||||||||||||||||
| Business services | $ |
528,990 |
|
$ |
417,963 |
|
$ |
973,369 |
|
$ |
824,508 |
|
|||||
| Support services |
|
113,786 |
|
|
127,705 |
|
|
235,801 |
|
|
256,304 |
|
|||||
| Financing |
|
85,462 |
|
|
92,419 |
|
|
174,540 |
|
|
189,462 |
|
|||||
| Equipment sales |
|
57,837 |
|
|
85,551 |
|
|
134,110 |
|
|
175,338 |
|
|||||
| Supplies |
|
32,773 |
|
|
46,490 |
|
|
78,482 |
|
|
97,443 |
|
|||||
| Rentals |
|
18,644 |
|
|
18,445 |
|
|
37,458 |
|
|
40,602 |
|
|||||
| Total revenue |
|
837,492 |
|
|
788,573 |
|
|
1,633,760 |
|
|
1,583,657 |
|
|||||
| Costs and expenses: | |||||||||||||||||
| Cost of business services |
|
454,311 |
|
|
337,918 |
|
|
828,976 |
|
|
664,964 |
|
|||||
| Cost of support services |
|
36,725 |
|
|
40,520 |
|
|
76,485 |
|
|
82,367 |
|
|||||
| Financing interest expense |
|
11,939 |
|
|
11,043 |
|
|
24,428 |
|
|
22,407 |
|
|||||
| Cost of equipment sales |
|
47,920 |
|
|
58,570 |
|
|
105,279 |
|
|
122,235 |
|
|||||
| Cost of supplies |
|
8,379 |
|
|
11,758 |
|
|
20,619 |
|
|
25,308 |
|
|||||
| Cost of rentals |
|
6,022 |
|
|
8,418 |
|
|
12,400 |
|
|
18,133 |
|
|||||
| Selling, general and administrative |
|
233,631 |
|
|
241,467 |
|
|
482,264 |
|
|
503,136 |
|
|||||
| Research and development |
|
7,467 |
|
|
13,572 |
|
|
19,583 |
|
|
26,149 |
|
|||||
| Goodwill impairment |
|
- |
|
|
- |
|
|
198,169 |
|
|
- |
|
|||||
| Restructuring charges and asset impairments |
|
4,922 |
|
|
5,899 |
|
|
8,739 |
|
|
9,599 |
|
|||||
| Interest expense, net |
|
26,446 |
|
|
28,019 |
|
|
52,329 |
|
|
55,621 |
|
|||||
| Other components of net pension and postretirement income |
|
386 |
|
|
(1,618 |
) |
|
235 |
|
|
(2,256 |
) |
|||||
| Other (income) expense |
|
(17,375 |
) |
|
(27 |
) |
|
16,112 |
|
|
17,683 |
|
|||||
| Total costs and expenses |
|
820,773 |
|
|
755,539 |
|
|
1,845,618 |
|
|
1,545,346 |
|
|||||
| Income (loss) from continuing operations before taxes |
|
16,719 |
|
|
33,034 |
|
|
(211,858 |
) |
|
38,311 |
|
|||||
| Provision for income taxes |
|
17,016 |
|
|
3,724 |
|
|
6,986 |
|
|
11,544 |
|
|||||
| (Loss) income from continuing operations |
|
(297 |
) |
|
29,310 |
|
|
(218,844 |
) |
|
26,767 |
|
|||||
| (Loss) income from discontinued operations, net of tax |
|
(3,032 |
) |
|
(5,613 |
) |
|
7,032 |
|
|
(5,729 |
) |
|||||
| Net (loss) income | $ |
(3,329 |
) |
$ |
23,697 |
|
$ |
(211,812 |
) |
$ |
21,038 |
|
|||||
| Basic (loss) earnings per share (1): | |||||||||||||||||
| Continuing operations | $ |
- |
|
$ |
0.17 |
|
$ |
(1.28 |
) |
$ |
0.15 |
|
|||||
| Discontinued operations |
|
(0.02 |
) |
|
(0.03 |
) |
|
0.04 |
|
|
(0.03 |
) |
|||||
| Net (loss) income | $ |
(0.02 |
) |
$ |
0.13 |
|
$ |
(1.24 |
) |
$ |
0.12 |
|
|||||
| Diluted (loss) earnings per share (1): | |||||||||||||||||
| Continuing operations | $ |
- |
|
$ |
0.16 |
|
$ |
(1.28 |
) |
$ |
0.15 |
|
|||||
| Discontinued operations |
|
(0.02 |
) |
|
(0.03 |
) |
|
0.04 |
|
|
(0.03 |
) |
|||||
| Net (loss) income | $ |
(0.02 |
) |
$ |
0.13 |
|
$ |
(1.24 |
) |
$ |
0.12 |
|
|||||
| Weighted-average shares used in diluted earnings per share |
|
171,478 |
|
|
178,281 |
|
|
171,167 |
|
|
182,638 |
||||||
| (1) | The sum of the earnings per share amounts may not equal the totals due to rounding. | ||
| Pitney Bowes Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Unaudited; in thousands) | ||||||||
| Assets | June 30,
2020 |
December 31,
2019 |
||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
862,897 |
|
$ |
924,442 |
|
||
| Short-term investments |
|
153,221 |
|
|
115,879 |
|
||
| Accounts and other receivables, net |
|
391,748 |
|
|
373,471 |
|
||
| Short-term finance receivables, net |
|
555,196 |
|
|
629,643 |
|
||
| Inventories |
|
73,653 |
|
|
68,251 |
|
||
| Current income taxes |
|
1,893 |
|
|
5,565 |
|
||
| Other current assets and prepayments |
|
121,924 |
|
|
101,601 |
|
||
| Assets of discontinued operations |
|
- |
|
|
17,229 |
|
||
| Total current assets |
|
2,160,532 |
|
|
2,236,081 |
|
||
| Property, plant and equipment, net |
|
375,465 |
|
|
376,177 |
|
||
| Rental property and equipment, net |
|
40,875 |
|
|
41,225 |
|
||
| Long-term finance receivables, net |
|
583,839 |
|
|
625,487 |
|
||
| Goodwill |
|
1,132,785 |
|
|
1,324,179 |
|
||
| Intangible assets, net |
|
175,460 |
|
|
190,640 |
|
||
| Operating lease assets |
|
199,162 |
|
|
200,752 |
|
||
| Noncurrent income taxes |
|
68,449 |
|
|
71,903 |
|
||
| Other assets |
|
379,611 |
|
|
400,456 |
|
||
| Total assets | $ |
5,116,178 |
|
$ |
5,466,900 |
|
||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ |
732,048 |
|
$ |
793,690 |
|
||
| Customer deposits at Pitney Bowes Bank |
|
613,449 |
|
|
591,118 |
|
||
| Current operating lease liabilities |
|
35,432 |
|
|
36,060 |
|
||
| Current portion of long-term debt |
|
163,257 |
|
|
20,108 |
|
||
| Advance billings |
|
122,606 |
|
|
101,920 |
|
||
| Current income taxes |
|
11,723 |
|
|
17,083 |
|
||
| Liabilities of discontinued operations |
|
- |
|
|
9,713 |
|
||
| Total current liabilities |
|
1,678,515 |
|
|
1,569,692 |
|
||
| Long-term debt |
|
2,553,490 |
|
|
2,719,614 |
|
||
| Deferred taxes on income |
|
270,376 |
|
|
274,435 |
|
||
| Tax uncertainties and other income tax liabilities |
|
35,928 |
|
|
38,834 |
|
||
| Noncurrent operating lease liabilities |
|
177,901 |
|
|
177,711 |
|
||
| Other noncurrent liabilities |
|
355,388 |
|
|
400,518 |
|
||
| Total liabilities |
|
5,071,598 |
|
|
5,180,804 |
|
||
| Stockholders' equity: | ||||||||
| Common stock |
|
323,338 |
|
|
323,338 |
|
||
| Additional paid-in-capital |
|
68,498 |
|
|
98,748 |
|
||
| Retained earnings |
|
5,188,119 |
|
|
5,438,930 |
|
||
| Accumulated other comprehensive loss |
|
(836,262 |
) |
|
(840,143 |
) |
||
| Treasury stock, at cost |
|
(4,699,113 |
) |
|
(4,734,777 |
) |
||
| Total stockholders' equity |
|
44,580 |
|
|
286,096 |
|
||
| Total liabilities and stockholders' equity | $ |
5,116,178 |
|
$ |
5,466,900 |
|
||
| Pitney Bowes Inc. | ||||||||||||||||||
| Business Segment Revenue | ||||||||||||||||||
| (Unaudited; in thousands) | ||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
|
|
2020 |
|
2019 |
% Change |
|
2020 |
|
2019 |
% Change |
|||||||||
| REVENUE | ||||||||||||||||||
| Global Ecommerce | $ |
398,453 |
$ |
282,319 |
41 |
% |
$ |
690,776 |
$ |
548,573 |
26 |
% |
||||||
| Presort Services |
|
118,127 |
|
128,138 |
(8 |
%) |
|
258,847 |
|
262,985 |
(2 |
%) |
||||||
| Commerce Services |
|
516,580 |
|
410,457 |
26 |
% |
|
949,623 |
|
811,558 |
17 |
% |
||||||
| Sending Technology Solutions |
|
320,912 |
|
378,116 |
(15 |
%) |
|
684,137 |
|
772,099 |
(11 |
%) |
||||||
| Total revenue - GAAP |
|
837,492 |
|
788,573 |
6 |
% |
|
1,633,760 |
|
1,583,657 |
3 |
% |
||||||
| Currency impact on revenue |
|
2,627 |
|
- |
|
4,967 |
|
- |
||||||||||
| Revenue, at constant currency | $ |
840,119 |
$ |
788,573 |
7 |
% |
$ |
1,638,727 |
$ |
1,583,657 |
3 |
% |
||||||
